Easing Trade

Trade is an integral part of day-to-day occurrences, which allows us to obtain what we want and need. Sometimes there are barriers present to hinder or halt trade in order to maintain fairness or make a statement. For example, the United States has had a trade embargo against Cuba, banning any and all trade with the country, since 1960, when Cuba resumed relations with the Soviet Union. There are three main acts/organizations that exist to maintain fairness of trade among countries, the Omnibus Trade and Competitiveness Act, the General Agreement on Tariffs and Trade, and the World Trade Organization.

The Omnibus Trade and Competitiveness Act was signed in 1988 by President Ronald Reagan to enhance the competitiveness of the American marketplace as a result of a diminishing trade surplus in the 1970’s which eventually turned into an increasing trade deficit. According to Cateora, the trade act reflected the realization that the US must deal with trading partners based on how they actually operate, not how the US wishes they behave. In order to improve America’s position in global trade, the bill focused on market access, export expansion, and import relief. Market access relates to the openness of markets for American products, which can be restricted or prohibited. To balance this, the OTCA gives the president power to restrict sales of a country’s goods if the respective country imposes unfair trade restrictions on the US. Export expansion was addressed in this act by granting easier access to export licenses. In this bill, import relief is addressed by providing remedies to US companies affected by imports. One of these remedies includes petitioning the government for temporary relief while the organization adjusts to the competition posed by imports. This act expired in 1991, was renewed by President Bill Clinton in 1994, expired again in 1997, and was renewed once more by President Clinton in 1999.

Another key component in the effort to ease trade...